Friday, September 17, 2010

"They are after you mind, buddy"

"The market fooled us"

"The market caught us on the wrong foot"

"The market is supreme!"

"No one can beat the market..."

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Familiar lines...

But, we never trade against the market.

There is no one called "market"

Market is nothing but we traders ourselves.

So, we are not pitched against the market

We are trading against each other!

The losers are among us

The winners are also among us.

Big or small, they all are from within the traders in the market!

Some trader out of "us" beat and take the money of the rest!

These "us" can be divided into 3 groups

1) small pocket - weak players

2) small pocket - sharp players

3) big pocket - sharp players

(There is nothing called big pockets-weak players!)

This write-up is for the small pocket - weak players.

Why do weak players almost always find themselves on the wrong side?

Why are the sharp power players almost always on the right side?

Are the weak players always wrong?

If not, then why is it that they have to lose majority of the times?

Or is it that the there is no right no wrong side in the market

- but only small pocket side and big pocket side!!!

Is it that the big pockets

-have the power to turn any position of small pocket-weak players as wrong side!

-have the power to shoo way the small pocket-weak players in one direction and then turn the tide in the opposite direction by sheer buying or selling power!

Might, they say, is right!

True in stock market as well!

Trading is a dodging game.

Sharp players are playing against weak players

constantly winning their money.

Their modus operandi is simple-

1) Make the weak players go up and themselves go down

2) Make them go down and themselves go up.

They do all this without going against the overall trend warranted by the fundamentals otherwise they will themselves risk getting checkmated!

Small pockets just can't synchronize with the bluff moves of the big pockets.

The big pocket-sharp players have got the money and hence no fear.

They can hold their position longer than you can stay liquid

So a small player just can't win in this zig-zag kho-kho game!

Fortunately there is hope for the small pocket players!

There is one way small players can save themselves from getting ejected from this prey predator game!

By neutralising the strength of the strong players!!!

By making their modus operandi ineffective!!!

How?

Lets see...

What's your weakness that is exploited by them!

- Fear or Greed!!

They dangle a carrot and you move along!

They scare you with hysteria and you run away, leaving behind your stock!!

Can't you see, buddy!

Their are after your mind!!!!!!!!!

Switch off your mind, will you!!!

Play with the method, not with the mind!!!

Courageously stay with the overall trend!

That way, the dodge tactics of big pockets simply won't work!

They try to shoo you away, but fail...

They try to lure you in, but you don't...

They try to wear you out, but they fail...

They know they too can't go against the overall trend against the fundamentals...

this way they will get trapped in their own net....

If they try to hammer the price down artificially, you take their money, say 'thank you' but still don't go short but re-enter long again!

If they try to fuel the price up artificially, you take their money, say 'thank you' but still don't go long but stay re-enter short again!

As they say

'Be a sucker to catch a sucker!!!'

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